Effects of Motivation on Employee Productivity A Case study first bank

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ABSTRACT

This study examines the relationship between Motivation and Employee productivity, using First
Bank Nigeria Plc. as a case study.
First Bank of Nigeria, is a Nigerian multinational bank and financial services company. It is the
country’s largest financial services company serving about eight Million (8,000,000) strong
customer base through over 750 nationwide branches , as well as online services, with its global
reach and currently it is Nigerian’s largest bank by assets.
Just like any long standing big organization First Bank Plc. is faced with the problem of
developing and sustaining staff engagement through motivation to achieve high employee and
organization productivity and prevent low employee morale and low overall organizational
performance, the paper aimed at identifying various strategies and motivational techniques that
exist in the organization, determination of the best motivational techniques that bring the best
out of employees and to determine ways of improving overall organizational performance
through appropriate motivational approach.
This study was carried out among the employees of First bank Nigeria Plc. spanning through
branches and the headquarter in Lagos, Nigeria.
450 well –structured questionnaire were administered on the six (6) geopolitical zones of
Nigeria where First Bank Plc is evenly represented in branches with a total of 300
questionnaires received back and passed through statistical analyses.
Research questions were raised based on the research objectives and hypotheses.
Chi ( ) statistical test was deployed to test the various hypotheses formulated
in the study. The result showed that quality of supervision has positive effect on employee
motivation to work better. It was also found that workers perception on what obtained in his
organization will motivate him to greater productivity. Financial motivation involving monetary
rewards have greater impact on performance and organizational productivity.
*Dr. Samuel Ajayi was head of Learning and Development of Access Bank Nigeria before joining Nigeria LNG, Ltd. now on
international assignment to Brunei LNG Ltd. Brunei Darussalam as Deputy Head of Non-Technical Competence & Leadership

CHAPTER ONE

INTRODUCTION

1.0 INTRODUCTION
Basic to any explanation of why people behave in a certain manner is a theory of motivation. As
Jones (1959), cited in Lawler (1969), pointed out that motivation theory attempts to explain
“how behaviour gets started, is energized, is sustained, is directed, is stopped and what kind of
subjective reaction is present in the organism.” The theory of motivation that will be used to
understand employees‟ performance is “expectancy theory” (Vroom, 1964 as described by
Robbins (1998). The expectancy theory used is based upon Lawier and Porter (1967), Porter and
Lawier (1968) as quoted by Robert and Hunt (1991). According to this theory, an employee’s
motivation to perform effectively is determined by two variables. The first of these is contained
in the concept of an effort-reward probability. This is the individual’s subjective probability that
directing a given amount of effort toward performing effectively will result in his obtaining a
given reward or positively valued outcome. This effort-reward probability is determined by two
subsidiary subjective probabilities: the probability that effort will result in performance and the
probability that performance will result in the reward (Lawler, 1969). Robins (1998) explained
thus, “Vroom refers to the first of these subjective probabilities as an expectancy and to the
second as an instrumentality. The second variable that is relevant here is the concept of reward
value or valence. This refers to the individual’s perception of the value of the reward or outcome
that might be obtained by performing effectively. Although most expectancy theories do not
specify why certain outcomes have reward value, the reward value of outcomes stems from their
perceived ability to satisfy one or more needs. Specifically relevant here is the list of needs
suggested by Maslow that includes security needs, social needs, esteem needs, and selfactualization
needs (Herzberg, 1987). The evidence indicates that, for a given reward, reward
value and the effort-reward probability combine multiplicatively in order to determine an
Motivation & Employee Productivity
individual’s motivation. This means that if either is low or not existing then no motivation will be
present. According to Lawler (1969), they illustrate a case of a manager who very much values
getting promoted but who sees no relationship between working hard and getting promoted. To
him, promotion does not serve as a motivator, just as it is not for a manager who sees a close
connection between being promoted and working hard but who does not want to be promoted. In
order for motivation to be present, the manager must both value promotion and see the
relationship between his efforts and promotion‟‟ Thus, for an individual reward or outcome the
argument is that a combination of its value and the appropriate effort-reward probability is
necessary. However, an individual’s motivation is influenced by more than one outcome. Thus,
in order to determine an individual’s motivation it is necessary to combine data concerned with a
number of different outcomes. This can be done for an individual worker by considering all the
outcomes he values and then summing the products obtained from multiplying the value of these
outcomes to him by their respective effort-reward probabilities. According to this theory, if
changes in job design are going to affect an individual’s motivation they must either change the
value of the outcomes that are seen to depend upon effort, or positively affect the individual’s
beliefs about the probability that certain outcomes are dependent upon effort (Vastano, 1985).
Mullins (1999), in his book ‘’Management and Organisational Behaviour, distinguished between
two kinds of rewards. As previously seen, the first types are those that are extrinsic to the
individual. These rewards are part of the job situation and are given by others. Hence, they are
externally mediated and are rewards that can best be thought of as satisfying lower order needs.
The second type of rewards is intrinsic to the individual and stems directly from the performance
itself. These rewards are internally-mediated since the individual rewards himself. These rewards
can be thought of as satisfying higher order needs such as self-esteem and self-actualization.
Motivation & Employee Productivity
Robert and Hunt (1991) go further to illustrate that these rewards involve such outcomes as
feelings of accomplishment, feelings of achievement, and feelings of using and developing one’s
skills and abilities.
Huczynski and Buchanan (2007) argued that “Motivation” is “A combination of goals
towards which human be-haviour is directed; the process through which those goals are pursued
and achieved and the social factors involved”. Luthans (1992) says, “Motivation is a
combination of needs, drives and incentives. Motivation is defined as the process that starts with
physiological or psychological deficiency or need that activates behaviour or a drive that is
aimed at a goal or incentive”. Mullins (1999) says, “The underlying concept of motivation is
some driving force within individuals by which they attempt to achieve some goal in order to
fulfil some need or expectation”. Mullins also distinguishes between extrinsic motivation related
to tangible rewards such as money; and intrinsic motivation related to psychological rewards
such as the sense of challenge and achievement. There are inexhaustible definitions of
motivation in various published works, articles, texts and journals by reputable fellows and
organizations’ studying the concept „‟Motivation‟. The aforementioned definitions are just a few
to illustrate the concept motivation as used in this work.
1.1. Information on the Target Organization
First Bank of Nigeria, is a Nigerian multinational bank and financial services company. It is the
country’s largest financial services company serving its eight Million strong customer base
through over 750 nationwide branches , as well as online services, with its global reach and it
is the country’s largest bank by assets. First Bank provides prospective investors wishing to
explore the vast business opportunities that are available in Nigeria an internationally
competitive world class brand and a credible financial partner.
Motivation & Employee Productivity
The Bank has been named “The Best Bank Brand in Nigeria” three times in a row — 2011,
2012, and 2013 .Bank’s brand purpose is to always put its stakeholders, customers and partners
at the heart of its business, even as it is poised to standardize customer experience and
excellence in financial solutions across Sub Saharan Africa.
First bank’s brand vision is ‘to be the partner of first choice in building your future The brand
promise is to always deliver the ultimate gold standard of value and excellence. This
commitment is anchored on First bank’s inherent values of passion, partnership and people, to
position its customers first in every respect.
As of December 2014, the Bank had assets totaling approximately US$23.4 billion (NGN:4.336
trillion).[8] The Bank’s profit before tax, for the twelve months ending 31 December 2014 was
approximately US$486.5 million (NGN:90.1 billion). At that time, the bank maintained a
customer base in excess of 10 million individuals and businesses.[9] First Bank of Nigeria has
solid short and long term ratings from Fitch, the Global Credit Rating Company, partly due to its
low exposure to non-performing loans. The Bank has strong compliance with financial laws and
maintains a strong rating from the Economic and Financial Crimes Commission of Nigeria
1.2 BACKGROUND TO THE STUDY
There is general agreement among psychologists that man experiences a variety of needs, there is
considerable disagreement as to what these needs are and their relative importance (Van Rooyen,
J. 2006). One of the basic problems in any organization is how to motivate people to work.
Motivating people to work entails, meeting their needs. This is because people working in the
organization to meet workers needs affect the satisfaction, which the workers derive from their
job.
Motivation & Employee Productivity
The satisfaction that the workers derive from their job can affect their motivation to work. People
are motivated by various factors at different times, according to Wilkinson et al (2007) the first
factor is the combination of the individual perceptions of the expectations other people have of
them, and their own expectations of themselves. This happens because people come into work
situations with various expectations. This is why a balance must be struck as much as possible
between organizational objectives and individual aspirations (Sulcas, P. 2007). The essence of
this is to ensure a situation where the individual is motivated while the organization is achieving
established objectives.
The second factor deals with the issue of self-images and concepts as well as life experiences and
personality.
These factors have to be positively motivated in the worker to yield proactive behaviour. This
can be achieved through a carefully planned reward system, which is a type of reinforcement
directed at modifying people’s behaviour.
Those who occupy management positions in organizations encourage employees basically
through means of positive reinforcement. Positive reinforcement boosts favourable consequences
that go a long way to encourage the repetition of particular behaviour (Adonisi, M. 2005).
It is therefore important for the management to ensure that they motivate their employees to
achieve the set goals and objectives of the organization. The management of an organization can
motivate its employees if it’s able to study the characteristics of the employee and know what
actually motivate them to productivity.
It is in view of this that this study wants to look at motivation of employees as a tool for
improving organizational productivity, by using the First Bank Plc as a case study.
1.3 Statement of the Problem
Motivation & Employee Productivity
Organization exists for the purpose of rendering some services. For the organization to meet its
objectives, people are employed in the organization in order to help the organization meet its
objectives. Thus, in order to ensure that people employed in the organization perform optimally
towards the realization of organizational goals, they need to be motivated to work.
Motivating people to work entails meeting their needs. There is a great controversy over the
issue of motivating people.
Some people are of the view that such extrinsic factors like money, praise, and quality of
supervision and company’s policy can motivate people to work, while others are of the view that
such extrinsic factors, like advancement, quality of the job done by person, recognition and
growth only may not motivate workers to productivity.
It is in view of these controversies that this study wants to look at the motivation of employees in
the organization by using First Bank Plc as a case study.
1.4 Objectives of the Study.
• This research work hopes to achieve the following objectives:
• To examine the factors which motivate employees to perform in First Bank Plc
• To look at various techniques of motivating people to performance in First Bank
Plc.
• To ascertain the effect of motivation on worker’s productivity.
• To identify the problems associated with the motivation of workers in First Bank
Plc.
• To suggest the solutions to such problems.
• Finally, to improve people’s knowledge in this area of organizational behaviour.
1.5 Research Questions
Motivation & Employee Productivity
It is in view of the above problems that the following questions arise:

  1. What are the factors that motivate employees to perform in First Bank Plc?
  2. What are the available techniques of motivating employees for higher
    productivity?
  3. Does motivation actually improve employee’s productive capacity in First Bank?
  4. What are the problems militating against employees motivation, and
  5. How can these problems of employees’ motivation be addressed in order to
    improve productivity in First Bank Plc?
    1.6 Research Hypotheses
    The following hypotheses will be tested in this study:
    a) Ho: The quality of supervision will not motivate workers productivity.
    Hi: The quality of supervision will motivate workers productivity.
    b) Ho: A worker’s perception of what obtained in his organization will not motivate him to
    greater productivity.
    Hi: A worker’s perception of what is obtained in his organization will motivate him to
    greater productivity.
    c) Ho: A worker’s perception of organizational appraisal policy will motivate him to greater
    productivity.
    Hi: A worker’s perception of organizational appraisal policy will not motivate him to
    greater productivity.
    d) Ho: The worker’s satisfaction with its fringe benefits will not motivate him to greater
    productivity.
    Motivation & Employee Productivity
    Hi: The worker’s satisfaction with its fringe benefits will motivate him to greater
    productivity.
    1.7 Significance of the Study
    a. This study will contributes to making the workplace meaningful and exciting, because
    motivated workers will bring about improved organization performance.
    b. This study will educate the management of organizations (especially the organization
    under study, First Bank Nigeria Plc ) on how to motivate their workers to
    productivity.
    c. The findings of this study will generate people’s interest in researching into other
    areas of research on motivation and performance in the workplace.
    d. Finally, the study hopes to enrich people’s knowledge in this area of organizational
    behaviour and management of people in the organization.
    1.8 Scope of the Study
    This study is on impact of motivation on organizational productivity. The study will also
    cover the various techniques of motivation and theories of motivation as they impact on
    employees’ productivity in an organization. The study covers a period of ten (10) years of
    organizational performance, 2004-2014.
    1.9. Limitation of the Study
    The study is limited to the employees’ motivational factors, and its effect on organizational
    productivity. The study does not consider other variables and as such is limited to only those
    areas specified above. Also, it does not cover all sectors of the Nigerian economy.
    The banking service sector is just a sector in Nigerian economy, and as such, the study does not
    look into how these motivational factors work or influence productivity across other sectors.
    Motivation & Employee Productivity
    1.10. Definition of Terms
    The following terms were defined as used in this study:
    Productivity: Is the ratio of output or production capacity of the workers in an organization. It is
    the relationship between the amount of one or more inputs and the amount of outputs from a
    clearly identified process.
    Employees: are the workers in an organization, working for the accomplishment of the
    organizational goals. In this study, the employees are those staffs of the organization.
    Motivation: Motivation is a decision-making process, through which the individual chooses the
    desired outcomes and sets in motion the behaviour appropriate to them”.
    Adequate Motivation: These are factors (familiarity, concern and driving force), which exist or
    are provided in a work situation either physically or psychologically which determine the input
    and productivity level of the worker.
    Intimacy: Intimacy or Familiarity could be described as the feeling of warmth and friendliness
    based on interpersonal relationship among people.
    Consideration: Consideration or Concern refers to a situation where both their colleagues and
    managers treat staffs with understanding. In this case, there is both a personal and human touch
    in dealing with workers.
    Morale: Moral refers to staff emotional and mental level of zeal.

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